Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for MODERNA INC. COMMON STOCK (MRNA) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MRNA was recently trading at $19.19 and has an implied volatility of 77.35% for this period. Based on an analysis of the options available for MRNA expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.93-$19.20 at expiration. In this scenario, the average linear return for the trade would be 30.57%.
Big -10.12% Change: After closing the last trading session at $21.35, MODERNA INC. COMMON STOCK opened today at $19.64 and has reached a low of $19.04.
Trade approach: A movement as big as -10.12% is a significantly bearish indicator, so this trade is designed to be profitable if MRNA maintains its current direction and does not revert back to pricing on the bullish side of $19.19 on 21-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if MODERNA INC. COMMON STOCK closes at or below $19.20 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.03% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.